Latest news with #Sonoco
Yahoo
10-05-2025
- Business
- Yahoo
Sonoco publishes 2024 corporate sustainability report following Eviosys merger
Packaging company Sonoco has released its 2024 corporate sustainability report, showcasing its transition towards more sustainable practices after acquiring Eviosys, a metal packaging company in Europe. This merger is claimed to enhance Sonoco's sustainability efforts, broadening its global presence and circular packaging capabilities with an additional 6,300 staff and 45 facilities across Europe, the Middle East, and Africa. Sonoco now establishes itself as a worldwide frontrunner in both metal and fibre packaging, serving popular consumer and industrial brands while pursuing measurable sustainable solutions under its vision of 'Better Packaging, Better Life'. The company has made considerable investments in renewable energy and energy efficiency, targeting a 25% reduction in scope 1 and 2 greenhouse gas emissions by 2030 based on a 2020 baseline. Initiatives include solar projects in Hartsville, South Carolina, Texas, and Italy, as well as turbo blowers in Stainland, UK, and Subang, Indonesia, along with a new biogas boiler in Subang. In total, Sonoco executed 27 sustainability initiatives in 2024, including its inaugural virtual purchase power agreement with ENGIE North America for 140MW of wind energy capacity, anticipated to be operational by the end of this year. These actions have led to a 9.6% decrease in energy consumption, exceeding the initial 8% target set for 2030. Additionally, enhanced intermodal transport in North America has resulted in a reduction of around 2,400 tonnes of carbon dioxide emissions annually. The integration of Eviosys, now functioning as Sonoco Metal Packaging EMEA, has further advanced the company's sustainability ambitions. In 2024, Eviosys reported a 26.3% decrease in scope 1 and 2 emissions from its 2020 baseline and attained an EcoVadis Platinum rating for the second consecutive year, receiving a perfect score for environmental performance. Moreover, Eviosys has installed five energy-efficient oxidisers at key locations, which are projected to reduce natural gas consumption by 60% while eliminating solvent emissions. "Sonoco publishes 2024 corporate sustainability report following Eviosys merger" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Sonoco Releases 2024 Corporate Sustainability Report
Showcasing Sustainability Impact of Eviosys Transformation and Global Progress HARTSVILLE, S.C., May 08, 2025 (GLOBE NEWSWIRE) -- Sonoco Products Company (NYSE: SON), a global leader in value-added sustainable packaging, today released its 2024 Corporate Sustainability Report, marking its transformation into a more sustainable packaging company following the acquisition of Eviosys, Europe's leading metal packaging manufacturer. The union significantly enhances Sonoco's sustainability footprint, global reach and circular packaging portfolio with an additional 6,300 new employees and 45 facilities across Europe, the Middle East and Africa. The Company is now a global leader in metal and fiber packaging, serving some of the best-known consumer and industrial brands, yielding measurable results toward sustainable solutions that achieve our purpose of Better Packaging. Better Life. ® Renewable energy and energy efficiency investments have helped Sonoco advance towards its Scope 1 and 2 greenhouse gas (GHG) emissions reduction targets of 25% by 2030 from the 2020 baseline. They include solar installations in Hartsville, S.C., Texas, and Italy; high-efficiency turbo blowers in Stainland, U.K. and Subang, Indonesia; and a new biogas boiler in Subang. In total, 27 sustainability projects were put in place 2024, including the development of Sonoco's first-ever Virtual Purchase Power Agreement with ENGIE North America for 140 MW of wind energy capacity, scheduled to be operational by the end of 2025. These initiatives have helped reduce energy use by 9.6%, exceeding its original 8% goal for 2030. In addition, increased use of intermodal transport in North America reduced CO₂ emissions by approximately 2,400 metric tons annually. The integration of Eviosys, now called Sonoco Metal Packaging EMEA, has further accelerated Sonoco's sustainability goals. In 2024, Eviosys achieved a 26.3% reduction in Scope 1 and 2 emissions from its 2020 baseline and earned an EcoVadis Platinum rating for the second year in a row, receiving a perfect score for environmental performance. Eviosys also installed five energy-efficient oxidizers at key sites, expected to reduce natural gas usage by 60% while eliminating solvent emissions. 'We're proud of the measurable progress made across the organization with the opportunity to expand impact with the addition of Eviosys,' said Scott Byrne, Sonoco Vice President of Global Sustainability. 'Together, we're building a truly global platform for circular innovation, climate action and sustainable growth.' Sonoco's packaging portfolio continues to reflect a commitment to recyclability, consumer convenience and environmental stewardship. Innovations include Sonoco's Rigid Paper Container and lightweight, two-piece steel aerosols developed for compressed-air dusters — both advance circularity through smart, scalable solutions, alongside Eviosys' award-winning Ecopeel™, an easy-open food can that uses less material and cuts carbon emissions by 20%, and Horizon™, a lightweight overcap that enhances recyclability. Both Ecopeel and Horizon have been honored at the 2024 Oscar de l'Emballage Awards for excellence in sustainable packaging. 'Our Better Packaging. Better Life.® purpose continues to guide everything we do,' said Howard Coker, Sonoco President and CEO. 'Our teams are innovating, investing and collaborating across the globe to build a more sustainable future for our customers, communities and our planet.' For more on the frameworks and guidelines supporting Sonoco's economic, environmental, social and governance standards, download the 2024 Corporate Sustainability Report: Reports | Sonoco Products Company. About Sonoco Founded in 1899, Sonoco (NYSE: SON) is a global leader in value-added, sustainable metal and fiber consumer and industrial packaging. The Company is now a multi-billion-dollar enterprise with approximately 23,400 employees working in 285 operations in 40 countries, serving some of the world's best-known brands. Guided by our purpose of Better Packaging. Better Life.,® we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America's Most Trustworthy and Responsible Companies by Newsweek in 2025. For more information on the Company, visit our website at Contact: Roger
Yahoo
01-05-2025
- Business
- Yahoo
Sonoco scales global metal packaging business, downplays tariff exposure
This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. By the numbers: Q1 2025 Net sales: $1.71B Up 30.6% year over year Consumer packaging net sales: $1.07B Up 83.4% year over year Industrial packaging net sales: $558M Down 6% year over year Net income: $54M Compared with $65M in Q1 2024 Overview: CEO Howard Coker said on a first quarter earnings call Wednesday that Sonoco was pleased with Q1 performance, including in its growing consumer packaging segment. Sonoco's balance sheet this year is being impacted by business purchases and sales in the last year, including the recent $3.8 billion acquisition of metal packaging business Eviosys, which it is integrating as 'Sonoco Metal Packaging EMEA,' and the $1.8 billion transaction to divest its thermoformed and flexibles packaging business to Toppan Holdings, which closed at the start of this month. Rebalancing the business: Sonoco highlighted the significance of those changes in its earnings presentation Wednesday. Its business was 56% industrial and 44% consumer in 2005; today, it's 34% industrial and 66% consumer. Sonoco is continuing to evaluate divesting ThermoSafe, hoping for a resolution by the end of this year, executives said. Eviosys integration: As it integrates Sonoco Metal Packaging EMEA, the company intends to treat its global metal packaging businesses as a single enterprise going forward. Sonoco projects $40 million in savings in 2025, part of its two-year synergies target of $100 million. 'Working together, our global can businesses are also identifying long-term savings and commercial opportunities that will benefit our customers for years to come,' Coker said. In the U.S. in Q1, the metal packaging business' double-digit growth was boosted by strength in aerosols and food cans with existing and new customers, he said. Economic environment: Coker noted that Sonoco's consumer packaging business tends to perform well in times of economic stress, in part because consumers may purchase more canned foods. Conversely, the industrial paper packaging business has historically experienced a slowdown during past recessions, but 'our industrial business in 2025 is significantly stronger, and the markets we serve have matured since the COVID recession of 2020,' Coker said. Still, Sonoco is not immune to an economic downturn, Coker said. Tariffs discussion: Sonoco's manufacturing network is designed to serve local markets, 'reducing our exposure to cross-border disruptions and tariff-related risks,' Coker said. Sonoco can also make price adjustments, he said. 'Most importantly, our transformed portfolio is significantly more resilient, with over two-thirds of our sales now coming from consumer food packaging, a segment that has historically demonstrated strong performance across economic cycles,' he said. Outlook: Sonoco projects its 2025 pro forma sales will range between $7.75 billion and $8 billion (including one quarter of thermoformed and flexibles packaging, and a full year of ThermoSafe.) The company reaffirmed its full-year earnings guidance, as well as its operating cash flow projection of $800 million to $900 million. Priorities for the year include driving performance in the consumer and industrial businesses, managing risk in the current economic conditions, advancing the Metal Packaging EMEA integration, further optimizing global manufacturing and improving stock performance, Coker said. Recommended Reading Toppan buys Sonoco's thermoformed and flexibles business for $1.8B
Yahoo
30-04-2025
- Business
- Yahoo
Sonoco reports 16.5% dip in GAAP net income in Q1 2025
Sonoco, a global packaging company, has posted a generally accepted accounting principles (GAAP) net income of $54.4m for the first quarter (Q1) ending 30 March 2025, a 16.5% dip from the $65.2m recorded in Q1 2024. It reported a 22.7% year-over-year rise in adjusted net income, totalling $137m, and adjusted diluted earnings per share of $1.38. In the first quarter, the effective tax rates on GAAP net income and adjusted net income attributable to Sonoco - excluding discontinued operations - were 30.9% and 25.7%, respectively. This contrasts with rates of 18.6% and 26.2%, respectively, during the same period in 2024. In the latest quarter, the company achieved record net sales of $1.7bn, marking a 30.6% increase compared to the same period in the previous year. The company attributed this growth to its Metal Packaging Europe, Middle East and Africa (EMEA) business following the 4 December 2024 acquisition of Titan Holdings I (Eviosys). Furthermore, price increases were partly counterbalanced by the loss of revenue from the sale of the Protexic Solutions business, the closure of two manufacturing sites in China, and adverse effects from foreign currency exchange rates. Overall, changes in sales volumes had a limited effect, as robust growth in consumer packaging volumes was balanced by year-on-year declines in volumes within the Industrial Paper Packaging segment. The company reported record first-quarter adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $338m, marking a 38% rise compared to the same period last year. Sonoco has reiterated its full-year 2025 outlook, anticipating a 20% increase in adjusted net income and a 30% rise in adjusted EBITDA. Sonoco recently completed the $1.8bn sale of its Thermoformed and Flexibles packaging segment to TOPPAN Holdings and used $1.5bn of the after-tax proceeds to reduce its debt significantly. In Q1 2025, the company directed $92m in net capital towards growth and productivity projects. The company realised $17m in favourable productivity improvements from procurement savings, production efficiencies, and fixed cost reduction efforts. Sonoco president and CEO Howard Coker said: 'Our first-quarter results demonstrated the strength of the new Sonoco as our global team achieved record top-line and adjusted EBITDA performance, growing 31% and 38%, respectively, while adjusted earnings per share rose 23% despite higher-than-expected interest expense, taxes and the negative impact of currency exchange rates. 'Consumer Packaging segment sales grew 83% and adjusted EBITDA jumped 127%. We completed the first phase of the integration of Eviosys as it has been rebranded Sonoco Metal Packaging EMEA and we drove strong synergies across the global Metal Packaging enterprise." "Sonoco reports 16.5% dip in GAAP net income in Q1 2025" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Hamilton Spectator
29-04-2025
- Business
- Hamilton Spectator
Sonoco Reports First Quarter 2025 Results
HARTSVILLE, S.C., April 29, 2025 (GLOBE NEWSWIRE) — Sonoco Products Company ('Sonoco' or the 'Company') (NYSE: SON), a core mid-cap growth and value equity which is a global leader in high-value sustainable packaging, today reported financial results for the first quarter ended March 30, 2025. References in today's news release to consolidated 'net sales,' 'operating profit,' and 'adjusted operating profit,' and Consumer Packaging segment 'segment operating profit' and 'segment adjusted EBITDA' along with the corresponding year-over-year comparable results, do not include results of the Company's Thermoformed and Flexibles Packaging business and its global Trident business (collectively, 'TFP'), which are being accounted for as discontinued operations. Summary: 'Our first quarter results demonstrated the strength of the new Sonoco as our global team achieved record top-line and adjusted EBITDA performance, growing 31% and 38%, respectively, while adjusted earnings per share rose 23% despite higher-than-expected interest expense, taxes and the negative impact of currency exchange rates,' said Howard Coker, President and Chief Executive Officer. 'Consumer Packaging segment sales grew 83% and adjusted EBITDA jumped 127%. We completed the first phase of the integration of Eviosys as it has been rebranded Sonoco Metal Packaging EMEA and we drove strong synergies across the global Metal Packaging enterprise. In addition to the benefit of the Eviosys acquisition, our Metal Packaging U.S. business achieved approximately 10% growth in organic volume/mix in the quarter. Our Industrial Paper Packaging segment improved adjusted EBITDA by 6% and EBITDA margin by approximately 200 basis points driven by year-over-year improvement in price/cost and productivity.' Coker continued, 'After the close of the quarter, we successfully completed an important step in our transformation to a simpler, stronger and more sustainable company with the sale of our Thermoformed and Flexibles Packaging business. We have used after-tax proceeds of approximately $1.56 billion to significantly reduce debt and strengthen our balance sheet. Today, our net leverage ratio is below 4.0X Net Debt/Adjusted EBITDA and we remain on track to achieve our targeted net leverage of 3.0X to 3.3X by the end of 2026.' First Quarter 2025 Segment Results (Dollars in millions except per share data) Sonoco reports its financial results in two reportable segments: Consumer Packaging ('Consumer') and Industrial Paper Packaging ('Industrial'), with all remaining businesses reported as All Other. 1Excludes results of discontinued operations. 2Segment and All Other adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company's reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release. Balance Sheet and Cash Flow Highlights Guidance(1) Reaffirmed Full-Year 2025 Commenting on the Company's reaffirmed outlook, Sonoco's Coker, said, 'Our operational and financial targets for 2025 have not changed despite economic uncertainty. Our focus continues to be to 'mind the store' to continue to drive improved performance from our core Consumer and Industrial businesses while managing risk associated with changing macroeconomic conditions. We believe Sonoco is well-positioned to weather the evolving geopolitical landscape for three reasons. First, our manufacturing network is designed to serve local markets, reducing our exposure to cross-border disruptions and tariff-related risks. Second, while we are actively working with our customers to help manage the impacts of higher input costs driven by tariffs, our business model allows for pricing adjustments when necessary. Finally, we believe our transformed portfolio is significantly more resilient, with over two-thirds of our sales now coming from consumer food packaging, a segment that has historically demonstrated strong performance across economic cycles. Despite seasonal working capital changes, Sonoco remains a strong cash generator and our capital deployment priorities remain focused on investing in ourselves to drive growth and productivity improvements. Further, we intend to use proceeds from divestitures, along with projected free cash flow, to reduce debt and we are continuing to reward our shareholders with cash dividends as we have for an extraordinary 100 consecutive years.' (1) Sonoco's 2025 guidance includes projected first quarter results from the TFP business. Guidance excludes any impact of other potential divestitures. Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company's effective tax rate, as well as other risks and uncertainties, including those described below, actual results could vary substantially. Further information can be found in the section entitled 'Forward-looking Statements' in this release. (2) Full year 2025 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses or other assets, and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company's future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance and net debt/Adjusted EBITDA targets to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K. Investor Conference Call Webcast The Company will host a conference call to discuss the first quarter 2025 results. A live audio webcast of the call along with supporting materials will be available on the Sonoco Investor Relations website at . A webcast replay will be available on the Company's website for at least 30 days following the call. Contact Information: Roger Schrum Interim Head of Investor Relations and Communications 843-339-6018 About Sonoco Sonoco (NYSE: SON) is a global leader in high-value sustainable metal and fiber consumer and industrial packaging. The Company is now a multi-billion-dollar enterprise with approximately 23,400 employees working in 285 operations in 40 countries, serving some of the world's best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America's Most Trustworthy and Responsible Companies by Newsweek in 2025. For more information on the Company, visit our website at . Forward-looking Statements Statements included herein that are not historical in nature, are intended to be, and are hereby identified as 'forward-looking statements' for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also 'forward-looking statements.' Words such as 'achieve,' 'anticipate,' 'assume,' 'believe,' 'can,' 'consider,' 'committed,' 'continue,' 'could,' 'develop,' 'estimate,' 'expect,' 'forecast,' 'focused,' 'future,' 'goal,' 'guidance,' 'intend,' 'is designed to,' 'likely,' 'maintain,' 'may,' 'might,' 'objective,' 'ongoing,' 'opportunity,' 'outlook,' 'persist,' 'plan,' 'positioned,' 'possible,' 'potential,' 'predict,' 'project,' 'remain,' 'seek,' 'strategy,' 'target,' 'will,' 'would,' or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this communication include statements regarding, but not limited to: the Company's future operating and financial performance, including full year 2025 outlook and the anticipated drivers thereof; the use of proceeds from divestitures and free cash flow to reduce leverage and expected future leverage ratios; the Company's ability to support its customers and manage costs; opportunities for productivity and other operational improvements; price/cost, customer demand and volume outlook; anticipated benefits of the Eviosys acquisition, including with respect to market leadership, strategic alignment, customer relationships, sustainability, innovation and cost synergies; expected benefits from divestitures, and the timing thereof; the effectiveness of the Company's strategy and strategic initiatives, including with respect to capital expenditures, portfolio simplification and capital allocation priorities; the resilience of the Company's portfolio; the effects of the changing macroeconomic environment, including trade policies and tariffs, on the Company, its supply chain and its customers, and the Company's ability to manage risks related thereto; and the Company's ability to generate continued value and return capital to shareholders. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. Such risks, uncertainties and assumptions include, without limitation, those related to: the Company's ability to execute on its strategy, including with respect to the integration of the Eviosys operations, divestitures, cost management, productivity improvements, restructuring and capital expenditures, and achieve the benefits it expects therefrom; conditions in the credit markets; the ability to retain key employees and successfully integrate Eviosys; the ability to realize estimated cost savings, synergies or other anticipated benefits of the Eviosys acquisition, or that such benefits may take longer to realize than expected; diversion of management's attention; the potential impact of the consummation of the Eviosys acquisition on relationships with clients and other third parties; the operation of new manufacturing capabilities; the Company's ability to achieve anticipated cost and energy savings; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariff or other trade policies or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine as well as the economic sanctions related thereto, and the ongoing conflicts in the Middle East), and the Company's ability to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, changes related to tariffs or other trade policies, fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; the Company's ability to meet its environmental, sustainability and similar goals; and to meet other social and governance goals, including challenges in implementation thereof; and the other risks, uncertainties and assumptions discussed in the Company's filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading 'Risk Factors.' The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur. References to our Website Address References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission's rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release. NON-GAAP FINANCIAL MEASURES The Company's results determined in accordance with U.S. generally accepted accounting principles ('GAAP') are referred to as 'as reported' or 'GAAP' results. The Company uses certain financial performance measures, both internally and externally, that are not in conformity with GAAP ('non-GAAP financial measures') to assess and communicate the financial performance of the Company. These non-GAAP financial measures, which are identified using the term 'adjusted' (for example, 'adjusted operating profit,' 'adjusted net income attributable to Sonoco,' and 'adjusted diluted EPS'), reflect adjustments to the Company's GAAP operating results to exclude amounts, including the associated tax effects where applicable, relating to: 1Restructuring and restructuring-related asset impairment charges are a recurring item as the Company's restructuring programs usually require several years to fully implement, and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, the inherent imprecision in the estimates used to recognize the impairment of assets, and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur. The Company's management believes the exclusion of the amounts related to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business. In addition to the 'adjusted' results described above, the Company also uses Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Net Leverage. Adjusted EBITDA is defined as net income excluding the following: interest expense; interest income; provision for income taxes; depreciation, depletion and amortization expense; non-operating pension costs; net income/loss attributable to noncontrolling interests; restructuring/asset impairment charges; changes in LIFO inventory reserves; gains/losses from the divestiture of businesses and other assets; acquisition, integration and divestiture-related costs; other income; derivative gains/losses; and other non-GAAP adjustments, if any, that may arise from time to time. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Net debt is defined as the total of the Company's short and long-term debt less cash and cash equivalents. Net leverage is defined as Net Debt divided by Adjusted EBITDA. Adjusted EBITDA by segment is reconciled to the closest GAAP measure of segment profitability, segment operating profit as the Company does not calculate net income by segment. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280 - 'Segment Reporting,' as prescribed by the Financial Accounting Standards Board. Segment results, which are reviewed by the Company's management to evaluate segment performance, do not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in LIFO inventory reserves; gains/losses from the sale of businesses or other assets; gains/losses from derivatives; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term 'segment operating profit' is defined as the segment's portion of 'operating profit' excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company's reportable segments and the All Other group of businesses, except for costs related to discontinued operations. The Company's non-GAAP financial measures are not calculated in accordance with, nor are they an alternative for, measures conforming to GAAP, and they may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. The Company presents these non-GAAP financial measures to provide investors with information to evaluate Sonoco's operating results in a manner similar to how management evaluates business performance. The Company consistently applies its non-GAAP financial measures presented herein and uses them for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of management and each business unit against plans/forecasts. In addition, these same non-GAAP financial measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community. Material limitations associated with the use of such measures include that they do not reflect all period costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, the calculations of these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently. To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in evaluating the Company's results to review both GAAP information, which includes all of the items impacting financial results, and the related non-GAAP financial measures that exclude certain elements, as described above. Further, Sonoco management does not, nor does it suggest that investors should, consider any non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever reviewing a non-GAAP financial measure, investors are encouraged to review and consider the related reconciliation to understand how it differs from the most directly comparable GAAP measure. Free Cash Flow The Company uses the non-GAAP financial measure of 'Free Cash Flow,' which it defines as cash flow from operations minus net capital expenditures. Net capital expenditures are defined as capital expenditures minus proceeds from the disposition of capital assets. Free Cash Flow may not represent the amount of cash flow available for general discretionary use because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations. QUARTERLY RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES The following tables reconcile the Company's non-GAAP financial measures to their most directly comparable GAAP financial measures for the three-month periods ended March 30, 2025 and March 31, 2024. Adjusted Operating Profit, Adjusted Income Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted Earnings Per Share ('EPS') 1 Operating profit, income before income taxes, and provision for income taxes exclude results related to discontinued operations of $39,881, $39,250 and $9,489, respectively. 1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $36,502, the Industrial segment of $5,265, and the All Other group of businesses of $194. 2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment. 3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $1,220, the Industrial segment of $12,401, and a gain in the All Other group of businesses of $40. 4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $562. 5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $20,072 and the Industrial segment of $218. 6Included in Corporate are losses on the divestiture of businesses associated with the Industrial segment of $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela. 7Included in Corporate are net unrealized gains from derivatives associated with the Consumer segment of $(284), the Industrial segment of $(2,552), and the All Other group of businesses of $(113). 1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $11,057, the Industrial segment of $6,631, and the All Other group of businesses of $206. 2Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $4,317, the Industrial segment of $22,603, and the All Other group of businesses of $1,148. 3Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $92 and the Industrial segment of $339. 4Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $(280) and the Industrial segment of $655. 5Included in Corporate are net gains from derivatives associated with the Consumer segment of $(43), the Industrial segment of $(190), and the All Other group of businesses of $(53).
